Nyrstar, owned by commodities group Trafigura, has launched a strategic review of its loss-making Budel zinc smelting operations in the Netherlands due to rising energy costs and government policies, it said on Thursday.
Operations to produce the metal mainly used to galvanise steel will continue as normal during the review, which is expected to conclude by the end of 2026, Nyrstar added in a statement.
“Nyrstar Budel faces significant pressure in terms of tough market conditions, elevated energy prices and historically low treatment and refining charges over a sustained period,” said CEO Guido Janssen.
“The operation is losing money every year and the conditions for next year look particularly difficult, given rising energy costs, together with a lack of supportive government policy.”
Adding to the pressure was a decision by the Dutch government not to include provisions for grid cost mitigation for energy-intensive industries in its 2027 budget, Nyrstar said.
The Budel smelter, with a capacity to produce 315,000 metric tons per year of zinc, was suspended in the second half of January 2024 due to high energy costs and restarted in May of that year.
“This is a significant decision point for Budel. The review will allow us to carefully assess the site’s position and the options available, while continuing to consider whether concrete action can materially improve the business case,” Janssen said.
(Reporting by Eric Onstad; Editing by Susan Fenton)
